Analyze the pattern of a postpaid electricity bill. It is generated after one month's consumption. it is having 14 days due date period and 7 days for disconnecting supply on non-payment.
On average, it is considered that 45 days of consumption is advanced and their bill amount is always on risk as of the department is concerned. So, it is important to get the advanced payment of such consumption in terms of security.
So, the security deposit is a cost to cover the estimated power consumption for 45 days.
Let us come to the original question of what is additional security deposit?
when one applies for a new electricity connection. there is no such pattern for their monthly consumption available. so, the applicant has to pay minimum security deposited decided by the UPERC (Check the minimum security deposit chart) as per the types of electricity uses.
Department has to check the average consumption pattern of each individual consumer at the beginning of the financial year and provide the notices to deposit a balanced security amount if exists.
So, the balanced security amount of actual consumption-based security and minimum security is called additional security deposit
Additional security deposit = cost to cover the estimated consumption of 45 days - minimum security.
Why do additional security deposit notices sent every year?
With the almost annual increase in the power tariff (rate hike) and an increase in the number of electrical appliances that consumers use, it is only inevitable that power consumption also increases and with it the billing amount too. So, it is mandatory to audit the billing amount and send notices if balance security exists.
Note: for the obvious reason explained above, there is no provision of the security deposit for prepaid consumers. is is also important to mention here that earlier additional security deposit was based on 60 day's consumption. UPREC has reduced it to 45 days which is effective from 8-July-2019.